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1.
If you want to increase the deposit on your CD periodically, you can do so by buying _________.
An add-on CD. With an add-on CD, you can add funds throughout the life of the CD.
2.
Financial institutions are allowed to compound certificate rates as they wish.
True. They may compound rates daily, weekly, or monthly.
3.
What is the denomination range for small-savings certificates of deposit?
Less than $100,000. Small-savings CDs may not exceed $100,000.
4.
To be quoted on the NASDAQ, a negotiable certificate of deposit must have a maturity of at least _______.
14 days. This is the minimum maturity.
5.
If you withdraw your money from a certificate of deposit before the maturity date, you will typically be penalized three to six months interest/dividends.
True. On the average, the penalty is three to six months worth of earnings.